Form 990 is the annual information return that most tax-exempt organizations must file with the Internal Revenue Service. Understanding this form is essential for nonprofit organizations, charitable trusts, and political organizations that want to maintain their tax-exempt status. This guide breaks down everything you need to know about the 2010 version of Form 990 using official IRS guidance.

What the Form Is For

Form 990 serves as the primary annual reporting requirement for tax-exempt organizations under section 501(a) of the Internal Revenue Code. Think of it as your organization's annual report card to the IRS and the public. The form requires organizations to report on their mission, programs, finances, governance practices, and compliance with federal tax laws.

For the 2010 tax year, organizations must file Form 990 if they have gross receipts of $200,000 or more OR total assets of $500,000 or more at year-end. This represents a significant change from previous years—the thresholds were lowered from $500,000 in gross receipts and $1.25 million in assets in 2009. Smaller organizations with gross receipts below $200,000 and assets below $500,000 can choose to file the shorter Form 990-EZ instead, while very small organizations (gross receipts of $50,000 or less) can submit the simple Form 990-N electronic postcard.

The 2010 Form 990 consists of an 11-part core form plus up to 16 schedules that different organizations must complete depending on their activities. All organizations must complete Parts I through XI of the core form, Schedule O for supplemental information, and any additional schedules triggered by "Yes" answers in Part IV's checklist. The completed form becomes a public document, allowing donors, the media, and regulators to evaluate how your organization operates (IRS.gov).

When You’d Use It (Late/Amended Returns)

Regular Filing Deadline

Your Form 990 is due on the 15th day of the 5th month after your organization's tax year ends. For calendar-year organizations, this means May 15, 2011 for the 2010 tax year. If this date falls on a weekend or federal holiday, the deadline moves to the next business day.

Extensions

Organizations can request an automatic 3-month extension using Form 8868, which must be filed by the original deadline. If you need even more time, you can request an additional 3-month extension (for a total of 6 months), but this second extension is not automatic—you must demonstrate "reasonable cause" for needing the extra time.

Amended Returns

If you discover errors or omissions after filing, you should file an amended Form 990. Check the "Amended return" box at the top of page 1, complete the entire form with corrected information, and attach an explanation of the changes in Schedule O. There's no separate form for amendments—you simply file a new, complete Form 990 marked as amended.

Late Returns

The law is strict about filing deadlines. If you fail to file for three consecutive years, your organization will automatically lose its tax-exempt status. This penalty became effective for returns due after 2006 and represents one of the most serious consequences of non-filing (IRS.gov).

Key Rules or Details for 2010

Lowered Filing Thresholds

The gross receipts threshold dropped from $500,000 to $200,000, and the assets threshold fell from $1.25 million to $500,000. This means many more mid-sized organizations must now file the full Form 990 instead of the simpler Form 990-EZ.

New Reporting Requirements

Part IV added questions about organizations operating hospitals (requiring audited financial statements) and transactions with controlled entities under section 512(b)(13). Organizations receiving certain loans or reporting indoor tanning services income faced new disclosure requirements.

Governance Questions

Part VI requires organizations to disclose whether their governing board adopted specific policies by year-end, clarifies that only current (not former) directors' relationships need reporting, and emphasizes that redacted information cannot be provided to board members before filing.

Updated Accounting References

The form incorporated new generally accepted accounting principles (GAAP) terminology, referencing FIN 48 as FIN 48 (ASC 740) and SFAS 116/117 as SFAS 116 (ASC 958) and SFAS 117 (ASC 958).

Step-by-Step (High Level)

1. Determine Your Filing Requirement

Calculate your gross receipts and total assets. If either meets the threshold, you must file Form 990.

2. Gather Information

Collect financial statements, compensation records for officers and key employees, governance documents, fundraising data, and information about related organizations.

3. Complete the Core Form

Work through Parts I–XII systematically. Part I provides a summary snapshot; Parts III–VI cover programs, governance, and compliance; Part VII details compensation; and Parts VIII–X present your financial statements.

4. Use the Checklist

Part IV asks yes/no questions that determine which schedules you must complete. Common schedules include Schedule A (public charity status), Schedule B (contributors), Schedule D (supplemental financials), and Schedule O (narrative explanations).

5. Complete Required Schedules

Based on Part IV, complete all applicable schedules. Each schedule has its own detailed instructions.

6. Review and Sign

Have an authorized officer review the entire return, sign the signature block in Part II, and ensure all questions are answered.

7. File On Time

Submit your return by the deadline to the appropriate IRS processing center, or request an extension if needed (IRS.gov).

Common Mistakes and How to Avoid Them

Incomplete Returns

One of the most frequent errors is leaving questions blank or failing to attach required schedules. Every line must have an entry—even if it's zero. Answer every yes/no question, and complete all schedules indicated in Part IV.

Netting Revenue

Organizations often incorrectly report contributions net of related fundraising expenses. You must report gross contributions in Part VIII, not the amount after subtracting costs. This can trigger penalties even if unintentional.

Incorrect Compensation Reporting

Many organizations struggle with Part VII, especially when reporting compensation from related organizations or dealing with common paymasters. Carefully follow the instructions for what constitutes reportable compensation.

Missing Schedule O Explanations

When questions ask you to "explain in Schedule O," you must provide that explanation. Failing to do so makes your return incomplete.

Inconsistent Information

If amounts you report conflict with other forms (like W-2s or Form 990-T), penalties may apply. Ensure all numbers reconcile across your tax filings.

Disclosure Errors

Misunderstanding what must be disclosed about transactions with interested persons, related organizations, or governance practices frequently leads to incomplete reporting.

Best Practice: Use the IRS sequencing list in the instructions to complete sections in the recommended order, double-check that all schedules required by Part IV are attached, and review the instructions thoroughly before filing (IRS.gov).

What Happens After You File

Public Disclosure

Your completed Form 990 becomes a public document. You must make it available for inspection at your offices during business hours for three years after the filing deadline or actual filing date, whichever is later. Anyone can request a copy, and you must provide one for a reasonable copying and mailing fee. Many organizations post their Form 990 online to satisfy these requirements more efficiently.

IRS Processing

The IRS processes your return and may contact you if information is missing or unclear. They may also select your return for examination or audit.

State Compliance

Many states accept Form 990 to satisfy their nonprofit reporting requirements, so you may be meeting multiple obligations with one filing.

Public Scrutiny

Donors, journalists, watchdog organizations, and the general public can review your Form 990. Your return influences public trust and donation decisions.

Exempt Status Maintenance

Filing Form 990 is essential for maintaining your tax-exempt status. Missing three consecutive years results in automatic revocation, which requires reapplying for exemption—a lengthy and burdensome process (IRS.gov).

FAQs

Q1: What are the penalties for filing late?

Organizations with gross receipts under $1 million face penalties of $20 per day (up to $10,000 or 5% of gross receipts, whichever is less). Larger organizations face $100 per day penalties up to $50,000. Responsible individuals can face additional penalties of $10 per day up to $5,000. Three consecutive years of non-filing results in automatic loss of exempt status.

Q2: Can I file electronically for 2010?

While electronic filing was encouraged in 2010, it wasn't yet mandatory for most organizations. However, certain large organizations were required to e-file. The IRS strongly encouraged electronic filing for faster processing and fewer errors.

Q3: What if I discover errors after filing?

File an amended Form 990 by checking the "Amended return" box and completing the entire form with corrected information. Attach an explanation in Schedule O describing what changed and why. There's no separate amendment form—you refile the complete Form 990.

Q4: Do I need to report volunteer hours or donated services?

No. Donations of services, including volunteer time, donated advertising space, and use of facilities, should not be reported in Part VIII revenue, even if your audited financial statements include them under GAAP.

Q5: What parts of Schedule B are public?

For most tax-exempt organizations (except section 527 political organizations), contributor names and addresses in Schedule B are not public. However, contribution amounts, descriptions of noncash contributions, and other Schedule B information must be disclosed unless it would identify the contributor.

Q6: How long must I keep Form 990 records?

The IRS recommends keeping copies of your filed Form 990 and supporting documentation permanently. At minimum, maintain records to substantiate the information reported for at least three years from the filing deadline.

Q7: Can smaller organizations file Form 990 even if not required?

Yes. Organizations eligible to file Form 990-EZ or Form 990-N can voluntarily choose to file the full Form 990 instead. However, if you choose to file Form 990, you must complete it in its entirety, including all applicable schedules (IRS.gov).

For More Information

Visit IRS.gov/charities or call the IRS Tax Exempt Organization hotline at 1-877-829-5500 for assistance with Form 990 questions.

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